While the current round of job cuts may seem harsh, they are vital to ensuring that the company remains cost effective and competitive and thus safeguards its future, Mr Snowball said.

It also should help ensure that the company can fight off possible takeovers and play a leading role in the consolidation of a fragmented insurance market.

"As a senior management team we have to convince shareholders that we are the best people to run the company," Mr Snowball said.

'No Luddite'

The executive added that offshoring jobs to India was a key component in preparing the firm to face future challenges.

Mr Snowball said that it would be pandering to "Luddite" opinions if Norwich Union - whose current advertising slogan is 'thinking ahead, so are we' - ignored the benefits of shifting jobs to India.

The move could potentially cut its cost-base by as much as 40%.

However, he added that offshoring was only part of a complete solution as there was a limit to the number of jobs that could be shifted to a time zone that was many hours ahead of the UK.

While Mr Snowball called the Indian market "immature and inexperienced" because it had only been offering outsourcing services to insurers for a short time, he said he expected workers to quickly match UK standards of service.

"The company and unions have a different view on outsourcing," he explained. "What we are seeing today is a reality of the dotcom world."